Author: Michael

Most Forex beginners believe that the standard and cent account is the same. Let’s try to explain the situation. For example, the broker Hotforex does not have cent accounts, there are only Standard or Micro accounts offered. Standard account: The account balance calculated in dollars. Minimal lot is 0.01 1 pips to 0.01 lot = 0.1 $ However, … [Read more…]

The trading system is all of the trading tools and rules chosen by a trader. A trading system is usually tested using historical data to ensure that it can potentially be profitable if the trader follows the system rules. Using a trading system, it is easier to work because the system has been thoroughly planned … [Read more…]

Trading psychology is one of the most important topics in Forex trading. Traders using demo accounts, i.e. trading with virtual money, show good results. However, when switching to real money their results worsen significantly. The trader, the currency pairs, and the trading system are all the same, but the result is different. Why is that? … [Read more…]

Statistics show that 80% of newcomers to trading on Forex lose their first deposit. In a lot of cases, it happens because a trader does not know anything about Money Management (MM), does not know how to use MM, or does not think MM is necessary. Using MM is vital to a successful strategy. Ignoring MM … [Read more…]

Indicators are the instruments of technical analysis that calculate price movements and give a trader the opportunity to make the right decision about entering or leaving the market. It is important to mention that there are no “miraculous” indicators that can predict the price. All indicators are based on the historical development of prices. Therefore, … [Read more…]

Gaining success in Forex trading (also true for other finance spheres) is impossible without thorough analyses. A trader should know how to determine the phase of a market at a given moment and its possible direction in order to choose the optimal trade at that moment. Technical analysis helps to answer these questions and to … [Read more…]